Bitcoin News Today: Strive Raising $500M via Preferred Stock to Boost Bitcoin Holdings

Strive Asset Management Announces $500 Million Capital Raising Initiative

Strive Asset Management, a publicly traded Bitcoin treasury company, announced a $500 million capital-raising initiative on December 9, 2025, through the issuance of Variable Rate Series A Perpetual Preferred Stock (SATA). The company aims to use the proceeds to expand its Bitcoin holdings, fund acquisitions, and support working capital needs according to reports. The move follows a broader trend of crypto treasury firms leveraging preferred shares to raise funds in a challenging market environment as research shows. Strive currently holds approximately 7,525 bitcoins, valued at around $695 million at current prices according to the financial report.

The preferred shares will carry an initial 12% annual dividend, payable monthly in cash, and may be adjusted to maintain a trading range of $95 to $105 per share. If dividends go unpaid, the rate could compound to as high as 20% annually. Strive's decision to issue preferred stock rather than common stock is intended to avoid dilution and maintain shareholder value amid a struggling stock price according to market analysis.

The capital-raising effort is also a response to the recent challenges faced by Bitcoin treasury companies. Many now trade at a discount to the value of the tokens they hold, limiting their ability to raise fresh capital. Strive's shares have also fallen below the net asset value of its Bitcoin holdings, a situation the company is seeking to address through the preferred stock offering according to financial reports. Barclays and Cantor Fitzgerald are acting as joint book-runners, with Clear Street as co-manager for the offering as industry sources report.

Market Conditions and Strategic Moves

Strive's move mirrors the approach taken by Strategy, the pioneering Bitcoin treasury firm, which has issued multiple preferred share classes to raise capital for BTC purchases. By following this model, Strive is attempting to sustain its growth strategy even as the broader market remains under pressure. Strategy's stock has fallen 60% over the past six months, reflecting the volatility of the sector. Meanwhile, Bitcoin's price has declined roughly 30% since early October, compounding the challenges for companies relying on Bitcoin treasury models.

Strive has also been active in other strategic moves. It recently announced an all-stock acquisition of Semler Scientific, a medical device company, which it expects to enhance its Bitcoin exposure and add synergies to its operations according to company filings. The acquisition was structured as a 210% premium deal when initially announced. Semler Scientific is currently trading at $20.33 per share, with a market capitalization of $310 million according to financial data.

Risks and Investor Concerns

Despite the company's aggressive growth strategy, concerns remain. Strive's Q3 2025 financial results highlighted a GAAP net loss of $192.3 million, or $0.22 per share. While the company anticipates turning a profit in 2026, the path to profitability remains uncertain. Additionally, Strive's stock price has declined significantly since its SPAC merger in September 2025, making new common equity issuances highly dilutive.

Analysts have raised concerns about the management's approach to capital allocation and portfolio strategy. Some describe the company's overconfidence as a red flag, particularly in its handling of preferred shares. Strive's focus on increasing Bitcoin per share rather than net asset value (NAV) is a unique approach in the sector, but it also exposes the company to the risks of Bitcoin's price volatility according to industry analysis.

Outlook for Bitcoin Treasury Firms

The broader Bitcoin treasury sector is facing a "Darwinian phase" as companies with leveraged equity models struggle under market stress. Galaxy Research has noted that the same financial engineering that amplified gains during the bull market has also amplified losses in the current bearish climate. Strive, as the 14th largest publicly listed BTC treasury company, is navigating a competitive landscape.

As of December 2025, Strive is leveraging its preferred stock structure to maintain flexibility in its capital-raising efforts. The company's ability to adjust dividend rates and maintain share price stability could provide some insulation against market volatility. However, success will depend on Bitcoin's price recovery and the company's ability to execute its acquisition and growth strategies effectively according to market analysis.